sunshineprofits.com / By Paul Rejczak / AUGUST 30, 2013, 7:50 AM
The major U.S. stock market indexes gained 0.1-0.8% yesterday, continuing their rebound following Tuesday’s sell-off, with technology sector leading the way, as the Nasdaq Composite gained 0.8%. The market sentiment was boosted by better-than-expected economic data announcements. The S&P500 index fluctuates around the level of 1,635, marked by the June-August uptrend’s 50% retracement. The next possible support level is at 1,617.38, marked by the uptrend’s 61.8% (Fibonacci golden ratio) retracement and the nearest level of resistance is at 1,652.54-1,656.02, marked by Tuesday’s daily gap down. Still, we have no confirmed trend reversal signals, as the index remains in a flat correction of the recent downtrend. The market is in a broad sideways consolidation phase, trading between around 1,550 and 1,700 since May, as we can see on the daily chart:
